, 1887-10-12

4A KAON0NSO %AA~.
amatter Of no great moment I'm one single
year, 1878, the surplus over the annual
Average consumption had been 923 million
cwts. but for Mr.. Wilbrandt,s conciusionait
Is sufficient, that no actual increase CORES
ponding to the increased population had tax
en- place; for so he argues, in that case. th~
price should at least have remained the Same
as it had been before, even If it did NOT rise.
In reality however the prices il Germany
had during the years 1871 till 1882 .oscillated
about a centre of 200 Marks for 1000 Elos
wheat, and ITO Marks fol-, rye. I'm Gern,anv
the acquisition of the famous five m;ll;ards
of French francs, of which a large amounh
was loaned to the banks, and from, them
found their way to the manufacturers, miners.
aud agrlculturists, had already some years
previously produced an until then unheard of
degree of commercial and Industrial actiyy;tv
and a dazzling appearance of prosperity. with !
corresponding enjoyment, comfort. and liberal.
expenditure. This state of Elysian bliss had
but a brief period, the facilities of getting at
the banks all the money desired, in the hone
OF obtaining a guinea for every dollar expend-
ed, led to oVer-production of everything and
thus again to- general collapse, which from
Vienna, where it began, spread all over Ger
many. Things were, however, Mr. Wilbrandt
asserts, in a fair way to improvement. when
IN 1879 the protective policy was adopted
and brought about similar results as the
carrier shower OF French gold: industry and
took temporarily renewed life, and
the agrlculturlst got the accustomed prices
but after the lapse of two on three years the
natural effects OF protection showed them.
selves IN increased production, leading to
over-productlofl' falling prices, general decay
OF industry, and, finally, diminished means
AMONG the maCGnQ tn h1u n-o4 H. z[-L
necessaries, which is technically expressed in
the term: 1.-THE purchasing power Of the nation
has decreased" and hereby it is explained.
how the price OF agricultural produce is low.
er, instead OF higher, than before the era of
protection. There remains however, another
point to be explained. AS Germany itself
does not produce all the corn it requires for
It's consumption, and as, to meet this deGcien-
cy, foreign corn has to be imported. how can
this foreign corn be introduced and stand the
competition, when it is loaded with an add!
tlonaI lmport-duty in a country, where the
prlce Is lowered and whose product is free
from the duty? The answer is this: AS
soon as the new duties were laid on the for
elgn corn, an important branch of commerce.
the transit trade in corn, ceased at once, be-
sides which, the corn merchants. fearing the
effect OF the system on the consumption, be-
came extremely cautions IN their operations.
At the same time the new system had this
other effect; Among the European corn-ex.
porting countries, Russia plays d very i'm
portant part, especially in relation to Germany.
The Russians saw at once the Consequences
to resultfrom the new German policy, and, that
If they were to continue the expectation of their
corn, it would have to be done under altered
conditions, at a reduced price, and they took
their measures accordingly. This was of
course a loss to them, but it was a necessity
imposed upon them. On all hands conces-
sions had to be made the railroad tariffs
were lowered for the transport of corn, the
agrlculturists had to submit to lower prices,
etc and this was not confined to .Russie,
other exporting countries had to act similarly.
And a great quantity of this corn, instead
sof being sent to Germany, where the duty
would have had to be paid, found its way
to other markets, principally of course to
England, and there had the same depressing
effect upon the prices these lower prices
neutralized. or perhaps did more than .neu-.
~tralize, the direct effect of the duty which
had been intended to raise the price,
This is the conclusion, at which the pam
phlet here introduced to the notice of the
readers of he'''Avis" arrives, and there. is
nc denying, that, as far as we are able to
judge from a mere extract, the whole argu-
mentation is strongly convincing. A doubt
however easily suggests itself, whether. it is